The United States’ market-government hybrid mortgage system is unique in the world. No other nation has such heavy government intervention in housing finance. This hybrid system nurtured the excessively risky loans, financed with too much leverage, that fueled the U.S. housing bubble of the last decade and resulted in the systemic collapse of the global financial system. The responsibility for the massive failures of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, at the center of American housing finance and the private securitization system that supports housing finance, falls directly on regulators and indirectly on their political overseers.

More on Housing Markets

Commentary

We Can Reduce the GSEs’ Risk without Congress

By Mark A. Calabria. American Banker. January 26, 2016.

A Home in Every Price Range

By David Boaz. TownHall.com. December 22, 2015.

The ‘Plan Bay Area’: Restricting Housing Development Isn’t Reform

By Jonathan Wood and Randal O’Toole. Forbes. June 3, 2015.

Cato Studies

How Are Small Banks Faring under Dodd-Frank?

By Hester Peirce, Ian Robinson, and Thomas Stratmann. Research Briefs in Economic Policy No. 20. February 18, 2015.

The Conservatorships of Fannie Mae and Freddie Mac: Actions Violate HERA and Established Insolvency Principles

By Michael Krimminger and Mark A. Calabria. Working Paper No. 26. February 9, 2015.

The Role of Mortgage Finance in Financial (In)Stability

By Mark A. Calabria. Working Paper No. 23. September 12, 2014.

Articles

The Productivity Gap: Monetary Policy, the Subprime Boom, and the Post-2001 Productivity Surge

George Selgin, David Beckworth, and Berrak Bahadir. Journal of Policy Modeling. Vol. 37. No. 2. March 2015.

Public Filings

On “Regulatory Burdens to Obtaining Mortgage Credit”

By Mark A. Calabria. Testimony. April 16, 2015.

Texas Dep’t of Housing & Community Affairs v. The Inclusive Communities Project, Inc.

By Meriem Hubbard, Ralph Kasarda, Joshua P. Thompson, & Ilya Shapiro. Legal Briefs. November 24, 2014.

Texas Dep’t of Housing & Community Affairs v. The Inclusive Communities Project, Inc.

By Meriem Hubbard, Ralph Kasarda, Joshua P. Thompson, & Ilya Shapiro. Legal Briefs. June 16, 2014.

Cato Reviews & Journals

Perez v. Mortgage Bankers: Heralding the Demise of Auer Deference?

Adam J. White. Supreme Court Review. 2014-2015.

Reforming Housing Assistance

Edgar O. Olsen. Regulation. Summer 2015.

Fannie, Freddie, and Future Bailouts

Policy Report. March/April 2015.

Events

34th Annual Monetary Conference

Featuring . November 17, 2016. Conference.

Zoning Rules! The Economics of Land Use Regulation

Featuring Mark A. Calabria. October 15, 2015. Book Forum.

Did Affordable Housing Policy Cause the Financial Crisis and Can It Happen Again?

Featuring Mark A. Calabria. April 7, 2015. Policy Forum.